Stock Alert: Stemline Stock Climbs 153% In Premarket On Acquisition News

(RTTNews) - Biopharmaceutical company Stemline Therapeutics Inc. (STML) is currently trading at $12.02, up $7.27 or 153.05% in the pre-market session. The stock has been trading between $3.21 and $18.22 in the past one year, and closed Friday's trade at $4.75, down 62 cents or 11.55%. STML

Stemline Therapeutics and a privately-held Italian pharmaceutical company Menarini Group, on Monday, announced that Menarini has agreed to acquire Stemline Therapeutics in a cash transaction valued up to $677 million.

The total potential cash consideration of $12.50 per share comprises of $11.50 cash and $1.00 of non-tradeable Contingent Value Right (CVR) upon completion of the first sale of ELZONRIS in any EU5 country after European Commission approval.

Stemline launched ELZONRIS for the treatment of blastic plasmacytoid dendritic cell neoplasm (BPDCN) in adult and pediatric patients, two years or older, following the approval by the United States Food and Drug Administration in December 2018. ELZONRIS is a novel targeted therapy directed to the interleukin-3 (IL-3) receptor-a (CD123).

As per the terms of the deal, Menarini would support further development of Stemline's ELZONRIS and enable global expansion by leveraging its commercial infrastructure in Europe and other ex-U.S. geographies.

The transaction, unanimously approved by the Boards of Directors of both companies, is expected to close in the second quarter of 2020, subject to customary closing conditions. Menarini expects to fund the acquisition through existing cash resources.